What is the process conducted by financial institutions to review someone's credit history and assess their trustworthiness when it comes to borrowing money?

• A. Debit card
• B. Credit check
• C. Credit report
• D. Credit bureau

Answer: (B)

Credit check is the process lenders use to review a person’s credit history and gauge borrowing risk. When you apply for a loan or new credit, the lender pulls your credit report from one or more credit bureaus. The report shows your payment history, current debts, open accounts, length of credit history, recent inquiries, and any public records. By analyzing these details, the lender decides whether you’re likely to repay on time and under what terms. Some checks are hard inquiries that can affect your score, while others are soft inquiries used for pre-qualification. A credit report is the actual file the lender reviews, and a credit bureau is the organization that keeps and provides these reports. A debit card is unrelated to evaluating credit.